1. Experience may not be a good teacher Most elderly who died in Hurricane Katrina dies not because of their health, but because of confidence and denial. They have survived several hurricanes over their lifetime, so they believe Hurricane Katrina is no exception. Experience can create a close attitude that prevents us from seeing things […]
What is your biggest investing mistake? Ask this question and you’ll recall the stock that gave you the biggest losses. It is intuitive. Losses get attributed to “I have made mistakes”. We throw them into the ‘Bad outcome’ mental bucket so we can learn what have we done wrong in order to avoid making the […]
PDF Version *** In Warren Buffett’s 1965 partnership letter, he gave us a glimpse on how to think about capital allocation: “The question always is, “How much do I put in number one (ranked by expectation of relative performance) and how much do I put in number eight?” This depends to a great degree on […]
PDF Version *** When Warren Buffett wrote that investors should have their eyes on the playing field instead of the scoreboard, the emphasis is to focus on what’s hugely important. At the same time, perhaps, his message is more than just how one should use their time, but the peril of constantly checking the scoreboard, […]